My Mangosteen Business Plan

MyMangosteen.com Business Plan © 2006, MyMangosteen.com, LLC

business planmymangosteen.com

independent distributor


Congratulations on your decision to become a XanGo distributor. You have chosen to become part of one of the best companies in the world.

Any successful business starts with a solid business plan. Most business plans include exhaustive information on operations, accounting, finance, shipping methods, payroll, inventory, human resources, branding, and much more.

You will notice that this business plan is simple, and many of the above items are conspicuously absent. Why? XanGo takes care of all this for you.

What this business plan will do is get you on the right track, allowing you to leverage a proven company, product, and system so that you may build a valuable company and legacy for you and your family.

Creating a Category . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Market Size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Revenue Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Business Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marketing and Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Training and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax Savings Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Getting Product Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .How to Order More Xango . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .How to Sign Up New Customers and Distributors . . . . . . . . . . . . . . . . . . . . . . .Internet Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Additional Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Corporate Contact Iinformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Why a Business Plan?

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Table of Contents


XanGo is the first company to bring whole fruit mangosteen juice to market. Historically, companies who are first to bring a product to market enjoy majority market share long after competition arrives. Here are two recent examples of the power of being a category creator:

Aloe Vera In 1978, Forever Living Products launched a complete family of aloe vera prod-ucts, bringing the remarkable properties of aloe to market. Until that time, aloe was virtually unknown. Now, the plant is a household name.

After 27 years of consistent growth, Forever Living Products is still the largest manufacturer and distributor of aloe vera products with over 7.5 million distributors in 105 coun-tries and billions of dollars in yearly sales.

Red Bull Red Bull entered the market selling an energy drink in 1987 and today is sold in over 100 countries around the globe. More than one billion cans of Red Bull a are consumed each year.

Over 60 competing energy drinks have entered the market place since Red Bullas’s launch, yet the company still outsells all competitors combined 6 to 1 with over 2.5 billion in annual sales.

In Summary As word spreads about the scientific research and positive effects of the mango-steen fruit, and as more companies try to enter the arena, XanGo distributors will enjoy the financial growth and stability of being first to market.

Creatinga Category

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The beverage industry is one of the most stable businesses in the world. Health beverage revenues grow by 20% every four and a half years. XanGo has already sold over 500 million dollars worth of product in its first three years and is on track to be the fastest health company to reach 1 billion dollars in annual sales.

Re-order rates for XanGo are six times the industry average because XanGo consumers experience great results with the product. Common personal experi-ences are from customers who have had success combating inflammation.

In 2004, consumers spent 7 billion dollars on anti-inflammatory drugs. It is pro-jected to grow to 9 billion by 2010. Anti-inflammatory drugs can cause severe side affects. The mangosteen fruit seems to be the only powerful natural anti-inflammatory that is completely safe.

“Hardly a week goes by without the publication of yet another study uncovering a new way that chronic inflammation does harm to the body.” – Time Magazine, Feb. 2004

Inflammation has been linked to these and other diseases: Alzheimer’s, kidney disease, Parkinson’s, uterine cancer, allergies, respiratory disease, heart disease, hypoglycemia, breast cancer, high cholesterol, degenerative arthritis, colon cancer, rheumatoid arthritis, infection, Crohn’s disease, and osteoporosis.

“One study showed mangosteen was a more potent anti-inflammatory agent than several prescription anti-inflammatory medications currently used for arthritis.” - Sam Walters, N.M.D, Tame the Flame

What is the Size of My Market?My market includes the tens of millions of consumers spending billions of dollars on anti-inflammatory medications alone. This does not include the market of those seeking preventive measures against free-radical damage and other illnesses and diseases.

The mangosteen, like aloe vera, will one day be a household name.

Market Size

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The power of networking is that large organizations can be built by the efforts of just a few. Statistic show that the majority of my organization will be the result of just 4 or 5 people telling the right 4 or 5 people, and so on.

While it is possible for my first 4 or 5 people to want to treat XanGo as a serious business and actively promote XanGo, I will most likely need to find 15 or 20 customers over the course of several months to find those “business leaders.”

The Formula For My CommissionsStatistics show that for every $1,000 I want to earn each month in commissions, I need approximately 125 active customers within my pay scale ordering an average of 1.5 cases per month directly from the company (which, according to XanGo, is the average amount an active customer purchases). Finding 125 customers on my own is not my concern. I only need to find a few key business partners and watch our combined efforts grow exponentially as customers share the product.

The table below shows how many active customers or distributors I need within my payscale to generate my desired monthly income.*

$500 per month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 distributors/customers$1,000 per month . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 distributors/customers$2,000 per month.. . . . . . . . . . . . . . . . . . . . . . . . . . . 250 distributors/customers$3,000 per month. . . . . . . . . . . . . . . . . . . . . . . . . . . .375 distributors/customers$4,000 per month. . . . . . . . . . . . . . . . . . . . . . . . . . . .500 distributors/customers$5,000 per month . . . . . . . . . . . . . . . . . . . . . . . . . . . 625 distributors/customers$6,000 per month. . . . . . . . . . . . . . . . . . . . . . . . . . . .750 distributors/customers$7,000 per month . . . . . . . . . . . . . . . . . . . . . . . . . . . 875 distributors/customers$8,000 per month . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 distributors/customers$9,000 per month . . . . . . . . . . . . . . . . . . . . . . . . . . 1,125 distributors/customers$10,000 per month . . . . . . . . . . . . . . . . . . . . . . . . . 1,250 distributors/customers

My monthly income goal in six months is $________. The number of distributors I will need to meet this objective is ________.**

*XanGo pays monthly commissions on up to 9 levels of your distributor/customer base. However, please note that XanGo uses Dynamic Compression, causing levels past your 9th to “roll up”. Please see the document titled “Dynamic Compression Example” in your MyMangosteen.com Back Office to understand the power of compression and how it can substantially increase commissions.

**This does not include income received from selling bottles or cases on hand at retail price.

Revenue Projections

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In addition to my customers who will purchase XanGo for specific health concerns, I will also be searching for individuals to work with me in building a successful XanGo business. Network marketing is unique because distributors can pick and choose who they work with.

Unlike sales, where one is taught to manipulate or “close” people, in Network Marketing we look for people motivated enough to take action themselves. I will seek out warm, open, easy-to-talk-to individuals who have good people skills, good communication skills, and who are reliable, industrious, coachable and have reasonable credibility and influence.

My business does not need individuals who will whine or complain, be skeptical, critical, uninterested or unmotivated.

Natural tendency might be to seek out those who look up to me. And this is fine. But I will remember that some of my best potential partners can be people whom I look up to, and who I may even consider “out of my league.”

I will complete a Prospect Profile Sheet (found in the “Getting Started Training” packet) for each of my potential business partners and review them with my upline support team.

My Upline Business PartnersTo help me identify the right people to work with in my business, I will consult with my upline team members in XanGo on a regular basis.

Network marketing is based on the principle that “a rising tide lifts all ships.” It is in my upline support team’s best interest to coach and support me in my business. My success is their future.

I will ask my XanGo sponsor to introduce me to at least three other XanGo distributors who have experienced great success. I will get the contact information for my upline 5K, 20K, and Premier distributors and will introduce myself. I will also try to meet as many successful distributors as possible at corporate events and meetings.

Business Partners

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Word of mouth is the most powerful form of marketing and advertising. Sharing my enthusiasm and stories about XanGo will generate interest. I will leverage my time by using effective tools and showing others how to do the same. People are not duplicatable, tools are.

Mangosteen and HealthOne of the first things I will do is help people understand the efficiency of the product so that they will understand the magnitude of the business opportunity. I can share with them: the Product area at my MyMangosteen.com website, The X Factor CD or book by J. Frederic Templeman, M.D., or Why is Mangosteen Right For Me? and The Whole Fruit brochures.

XanGo Company and Opportunity When inviting people to learn more about my XanGo business, I can use: the Business presentation at my MyMangosteen.com website, Expansion or Exploration DVDs by XanGo Corporate, or Wealth Building 101 by Bob Schmidt (as well as other excellent business tools).

Network Marketing Industry ValidationDirect selling is the best kept secret in the business world. To help those who may be skeptical about network marketing as a viable business, I can use the following tools: The Perfect Business? CD by Robert Kiyosaki, The Next Millionaires CD by Paul Zane Pilzer, and the Business is Booming CD.

These and other tools are available in the MyMangosteen.com Back Office and at MangosteenTools.com.

Responsible business owners understand that ongoing training and personal development is a timeless key to success. We live in the Information Age and it is easier now, more than ever, to increase knowledge.

Leaders in network marketing understand that helping others to consistently learn and grow is the best way to ensure their own success.

Here are tools I can use to continuously improve myself and my team:

1) Take the “Getting Started Training” in the MyMangosteen.com Back Office (or have an upline leader print a copy to review).

2) Listen to training CDs such as Key to the Vault by Bob Schmidt and Building Your Network Marketing Business by Jim Rohn.

Marketing andAdvertising

Training andDevelopment

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3) Watch DVDs such as Expansion, Exploration, and Mangosteen: the X Factor.” These DVDs also make excellent tools for home or meeting presentations.

4) Read good personal development and network marketing industry books such as The Business School For People Who Like Helping People by Robert Kiyosaki, The Next Millionaires or The Wellness Revolution by Paul Zane Pilzer, Think and Grow Rich by Napoleon Hill and How To Win Friends and Influence People by Dale Carnegie.

5) Read booklets about mangosteen, such as Dr. Templeman’s “The X-Factor.”

The purpose of this section of my business plan is to address the extensive tax deductions available with a home-based business and why being on auto delivery with XanGo is a critical element to my tax plan.

Tax advantages of a home-based business start immediately. My tax strategy will be to convert as many lifestyle expenses as possible in to legitimate tax deductions. Things like automobile expenses, computers, rent, phones, printers, Internet access, marketing tools, gift giving, recreational events, travel, and meals can all be legitimate tax write-offs.

Being on the XanGo Auto Delivery program is a critical element for my tax savings plan. I cannot collect commissions without being on ADP.

The IRS requires is that I intend to make a profit, that I have a 5-year business projection, that I make a good faith effort, that my expenses are reasonable and ordinary for conducting my business, and that I keep good records stating who I was with, why, when and where. I will keep a log, noting all appointments, time spent prospecting, classes I attended, time spent researching and reading, plus other XanGo-related activities.

If I were to be on automatic delivery for one year, keep good records, and never sign up a single distributor (which is extremely unlikely in XanGo) the tax savings alone could far outweigh the cost of the money I invest in the product.

“Why would you want to start a home-based business even if you are otherwise gainfully employed? Simple. To keep more of your hard-earned money to spend the way you want to spend it.” - Stanford Botkin, CPA, tax lawyer, former IRS attorney, and author of Lower Your Taxes Big Time.

Tax SavingsPlanning

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• Shake well before pouring (you’ll notice the mangosteen puree settles in the bot-tom of the bottle and needs shaking).

• Most people prefer XanGo chilled.

• Drink XanGo before a meal or with food, as some xanthones are fat soluble and are metabolized more completely when combined with good fats in your food.

• Drink plenty of water every day. This breaks down food in to smaller particles and helps assimilation into the cells. Also, drinking water will help flush toxins that may be loosened by mangosteen juice. Remember, caffeinated drinks actu-ally dehydrate the body, so increase water intake accordingly. Most healthcare professionals recommend adults drink a min. of 2 quarts of plain water daily.

• Some people may experience immediate results, while it may take some time for others (as much as 30-90 days). Others may not have noticeable experiences, but will enjoy taking a preventative approach with their health.

• The half life (length of time the mangosteen juice works in the body) is short, about 4-8 hours. Taking several servings throughout the day is recommended.

• Basic Serving Guidelines - Severe health challenge: 2-3 ounces 3-5 times a day - Minimal health concerns: 2 ounces 2-3 times a day - Preventative: 1-2 ounces 2-3 times a day - Kids (ages 6-12): 1/2 adult dosage - Kids (under 6): 1/4 adult dosage - Infants (once fruit is introduced in diet): 1 tablespoon a day

• Pregnant and lactating women may drink mangosteen juice.

• Experiment. Every body is unique.

* The information in this document is not intended to give medical advice or to substitute for professionally prescribed health treatment. Consult your physician on any questions or concerns about taking natural products.

Getting ProductResults

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Automatic Delivery ProgramWhen a customer or distributor is participating in the Automatic Delivery Program (ADP), the customer or distributor’s order gets processed on or around the 15th of each month. The XanGo order will be shipped after payment has cleared.

For those already on ADP, if you run out of XanGo prior to the 10th and place an order for more XanGo, your autoship will NOT be sent unless you inform the com-pany that you still want to receive it or if you are enrolled in Unconditional ADP.

Your first Automatic Delivery shipment will be sent on or around the 15th of the month following your initial order. Initial orders are processed and shipped at the time of signup. ADP orders are sent the following month, on or about the 15th.Changes to your ADP cannot be made online. You must call the company directly.

Purchasing Additional XanGo 1. Telephone – You may call corporate headquarters directly and place an order by calling 1-877-GoXango (international phone numbers available on page 12). as2. Online – Go to www.XanGo.net, click on the “log in” link and use your XanGo distributor ID and password. Once in the XanGo back office, click on Product Order.

3. Will Call – Some countries have “will call” locations. Please call corporate headquarters to find the location nearest you.

In order to purchase XanGo wholesale directly from the company, a person must have a distributorship (i.e. “membership”) with the company. Membership is $35 US. Distributors/members are issued a XanGo ID number that they will use when ordering more product or signing up additional distributors. There are four ways to enroll a new customer or distributor:

Online MyMangosteen.com website (MOST RECOMMENDED) – direct people to click on the “Order” area of your personal website. It’s a three-step, data-secure process that allows people from around the globe to easily join your team. For people who are online, this is the most convenient signup method. The best benefit is that you do not have to decide a new distributor’s Sponsorship and Placement prior to signup. After you receive an email that the new distributor has joined your team, you have as long as you need to confirm or change Sponsorship and Placement before the order is placed with XanGo corporate headquarters. You will make the final selection of Sponsorship and Placement using the MyMangosteen.com Placement Tool in your Back Office. Make this confirmation as soon as possible because the person is not signed up and they will not receive product until you do so.

XanGo Corporate website – You can log in to your XanGo corporate back office (www.xango.net) and fill out a distributor application online. When you do

How to Sign UpNew Customersand Distributors

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How to OrderMore XanGo


this, make sure you know the Sponsor ID number and the Placement ID number along with their SSN and initial order and ADP requests. Warning: orders are pro-cessed immediately and you do not have the flexibility of the MyMangosteen.com Placement Tool mentioned above.

Telephone Potential distributors can call XanGo headquarters directly and refer to their Sponsor’s and Placement ID number. Or, current distributors can three-way call corporate headquarters with the potential distributor on the phone to make sure Sponsorship and Placement is correctly assigned.

Fax Fax completed applications directly to XanGo corporate headquarters. Application forms are supplied in your New Distributor Kit which should arrive soon after you become a distributor. You can also download printable application forms in your corporate back office.

Your first and best resource is your MyMangosteen.com website. Your Back Office connects you with distributors around the world, and assists in organizing leads, documents, meetings, and training.

www.MyMangosteen.com – your #1 online marketing system.

www.XanGo.com – the corporate site. Place orders online, check your business growth, track shipments, etc....

www.MangosteenMD.com – Dr. Templeman’s research website.

www.PubMed.com – The National Library of Medicine. Contains published medical research about mangosteen and xanthones.

www.MangosteenTools.com – Lots of brochures, pamphlets, CDs, and DVDs about the product and the company. These are your sales and training tools. Here is their phone number: 888-461-7090

Internet Resources

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Dozens of other helpful documents are available in your MyMangosteen.com Back Office. You will find detailed downloads on topics such as:

• scientific research on the mangosteen• advanced compensation plan documents• leadership training• tax planning and record keeping• advertising and marketing methods• industry articles• and much more (helpful downloads are always being added)

If you do not have Internet access, call your upline leaders and ask them to print out some of their favorite resources.

AdditionalResources

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United States

Phone: 1-877-469-2646 Fax: 1-801-816-8159Customer Service Phone: 1-877-469-2646 [email protected]@xango.net

Australia

Phone: 1-800-010524 Fax: 1-800-008286 [email protected]@xango.net

Canada

Phone: 1-888-311-0014 (English)Phone: 1-888-233-5459 (French)Fax: 1-888-233-5496 (English)Fax: 1-888-233-5514 (French) [email protected]@xango.net

Germany

Phone: 0800-101-6058Fax: [email protected]

Hong Kong

Phone: 800-965802 Fax: 800-933368 [email protected]@xango.net

Japan

Phone: 00531-121443 Fax: [email protected]@xango.net

General Email Addresses

Compensation Plan: [email protected]: [email protected]: [email protected]: [email protected] Service: [email protected]: [email protected]

Mexico

Phone: 001-8885461510Fax: 001-8882643697 Customer Service Phone: [email protected]@xango.net

New Zealand

Phone: 0800-446641 Fax: [email protected]@xango.net Philippines

Phone: 1800-11160795Fax: 1800-11160796

Singapore

Phone: 800-1204184Fax: [email protected]@xangosteen.com

Sweden

Phone: 020-797935 Fax: [email protected]

Trinidad/Tobago

Phone: 1-8885212195 Fax: 1-8882966901 T&[email protected]&[email protected]

United Kingdom

Phone: 08-000324494 Fax: 08-000326078 [email protected]@xango.net

CorporateContactInformation

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Documents

My Mangosteen Business Plan